5% Down JV Program
We now have two JV programs available as follows:
1.) ELC Program – Equity w/o Debt
Non-Recourse, High Loan to Cost Program for entrepreneurs
(Referred to as “ELC” program)
Minimum financed amount $7.5M
Maximum loan to cost 95% (exceptions higher case-by-case)
Type of financing Equity only-no debt
Project types Real estate, energy, oil & gas, mines, businesses
Territory US & international (politically stable & economically viable
Amount of ownership taken 25-45%
Loan fees to investor 0
Average closing time 90-100 days (can vary)
Investor pays for all due diligence/third party reports.
Client reimburses investor only when final loan agreement is concluded.
2.) JV Debt / Equity
We can provide both debt and equity for a joint venture project if developer has 5% of project cost to contribute, occasionally less than that if project is very strong.
Since our minimum amount for equity is $3M, total project cost must be at least $10M or so.
All of the most common property types are fine:
Apartments, assisted/senior living, hotels, retail and offices.
Typical capital stack:
Developer contribution 5% of cost (or less)
JV partner 30%
Construction loan 65%
Total 100% of project cost
Out of Pocket Costs:
$3000-5000 fee payable after the LOI with terms is issued which covers underwriting and site visit.
Timing depends on how close developer is to being ready, 90 days or so is typical.
1. Is this non-recourse? NO
2. Does it include international projects? NO
3. Does this include non-construction projects?
YES IF THERE IS ENOUGH UPSIDE FOR IT TO MAKE SENSE TO THE EQUITY INVESTOR
4. What are the length of the financing and typical rates?
3-5 YRS TYPICAL BUT CAN VARY. EQUITY PRICING IS CASE BY CASE BUT DEBT USUALLY RUNS 5-6%Submit Capital Request